Mulga Tank Hosts 5.3 Million Tonnes of Contained Nickel in Massive New Resource
Western Mines Group has announced a landmark nickel sulphide discovery at its Mulga Tank project in Western Australia, revealing a globally significant resource of 5.3 million tonnes of contained nickel. Extensive drilling confirms a large-scale, high-potential nickel system that could reshape Australia’s position in the global nickel market.
- Mulga Tank hosts 1,968 million tonnes at 0.27% nickel, containing 5.3 million tonnes of nickel
- Largest nickel sulphide deposit in Australia and among the top 10 worldwide
- Extensive drilling confirms both disseminated and high-grade massive sulphide mineralisation
- Project covers a 425km strategic position in the under-explored Minigwal Greenstone Belt
- Tight capital structure with ~$25 million market cap and expert-led exploration team
A Landmark Discovery in Western Australia
Western Mines Group has unveiled a major breakthrough with its Mulga Tank nickel sulphide project, located in the Yilgarn Craton of Western Australia. The company’s latest resource estimate reveals a colossal 1,968 million tonnes of ore grading 0.27% nickel, equating to 5.3 million tonnes of contained nickel. This positions Mulga Tank as the largest nickel sulphide deposit in Australia and places it among the top ten globally.
The discovery is particularly notable for its scale and geological setting. Mulga Tank is a camp-scale komatiite-hosted nickel system, a style of deposit known for hosting some of the world’s richest nickel mines. Western Mines’ strategic 425-kilometre tenure in the under-explored Minigwal Greenstone Belt offers a vast frontier for further exploration.
Drilling Success and Resource Confidence
Extensive drilling campaigns have confirmed the presence of both low-grade disseminated sulphides and higher-grade massive sulphide zones. Multiple phases of reverse circulation and diamond drilling have intersected thick intervals of mineralisation, with some holes returning cumulative nickel grades around 0.28% over hundreds of metres. Notably, high-grade zones with nickel concentrations exceeding 1% have been identified, including semi-massive sulphide veins and remobilised nickel sulphide veinlets.
The resource estimate complies with the rigorous JORC 2012 reporting code and has been compiled under the supervision of Western Mines’ Managing Director, Dr Caedmon Marriott, a qualified geoscientist. This adds a layer of technical credibility to the resource figures and supports the company’s confidence in the project’s potential.
Strategic Importance Amidst Nickel Market Dynamics
Nickel’s role as a critical metal for stainless steel production and electric vehicle batteries underpins the strategic value of Mulga Tank. The company highlights that global nickel demand is poised for structural growth, driven by the energy transition and increasing battery manufacturing. Supply-side challenges, including falling ore grades, rising costs, and geopolitical concentration of production, particularly in Indonesia, add to the appeal of a stable, western-sourced nickel supply.
Western Mines’ disciplined approach, focusing on efficient exploration and a tight capital structure with a market cap around $25 million, positions it well to leverage ongoing nickel market tailwinds. The company’s exploration team, led by nickel expert Dr Benjamin Grguric, is advancing a methodical program aimed at resource extension, infill drilling, and targeting higher-grade zones.
Looking Ahead – Unlocking the Full Potential
While the current resource is already impressive, Western Mines believes the Mulga Tank system has further upside potential. Recent deep drilling has intersected extensive sulphide mineralisation at depth, suggesting the presence of a “monster” sulphide body yet to be fully delineated. The company’s ongoing exploration philosophy emphasizes high-quality technical work, frugality to minimise dilution, and a per-share value focus.
As the project advances, investors and analysts will be watching closely for updates on drilling results, resource upgrades, and potential development pathways. The Mulga Tank discovery could mark a significant shift in Australia’s nickel landscape and contribute meaningfully to global battery metals supply chains.
Bottom Line?
Western Mines’ Mulga Tank discovery sets a new benchmark for Australian nickel, but the journey to production and market impact is just beginning.
Questions in the middle?
- How will Western Mines fund the next phases of exploration and potential development?
- What are the timelines and hurdles for advancing Mulga Tank towards production?
- How might evolving nickel market dynamics and ESG considerations influence project economics?